ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Thematic (Sector/Industry)

<ul>
<li>Indonesian Digital Banks are an increasing focus for investors given their potential to serve the huge numbers of underbanked in Indonesia through tapping into e-commerce and fintech ecosystems and customers.</li>
<li>Players such as <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago,</a><a href="https://www.smartkarma.com/entities/allo-bank-indonesia-tbk-pt" target="_blank" data-smartkarma-citation="entities:33551:1" rel="noopener">Allo Bank Indonesia</a>, <a href="https://www.smartkarma.com/entities/pt-bank-neo-commerce-tbk" target="_blank" data-smartkarma-citation="entities:15245:1" rel="noopener">PT Bank Neo Commerce,</a> and <a href="https://www.smartkarma.com/entities/bank-rakyat-indo-agroniaga" target="_blank" data-smartkarma-citation="entities:16626:1" rel="noopener">Bank Rakyat Indo Agroniaga</a> lead the field with the potential to tap their respective potential ecosystems.</li>
<li>We prefer <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago</a> and <a href="https://www.smartkarma.com/entities/allo-bank-indonesia-tbk-pt" target="_blank" data-smartkarma-citation="entities:33551:1" rel="noopener">Allo Bank Indonesia</a>, given the former's exposure to the <a href="https://www.smartkarma.com/entities/goto-gojek-tokopedia" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">GoTo</a>'s ecosystem and the latter's to CT Corp, <a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak</a>, and <a href="https://www.smartkarma.com/entities/grab-holdings-inc" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (GRAB US)</a>. </li>
</ul>


Indonesian Digital Banks are an increasing focus for investors given their potential to serve the huge numbers of underbanked in Indonesia through tapping into e-commerce and fintech ecosystems and customers.
Players such as Bank Jago,Allo Bank Indonesia, PT Bank Neo Commerce, and Bank Rakyat Indo Agroniaga lead the field with the potential to tap their respective potential ecosystems.
We prefer Bank Jago and Allo Bank Indonesia, given the former's exposure to the GoTo's ecosystem and the latter's to CT Corp, Bukalapak, and Grab (GRAB US). 


Indonesian Digital Banks - Ecosystems and Channels

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia Persero (BBRI IJ)</a> has just announced plans for a long-awaited rights issue, representing 23.25% of its total equity, which potentially lifts an overhang for the bank.
Part of the proceeds of the rights issue will be used to acquire government pawnshop operator, PT Pegadaian, as well as ultra-micro lender PT Permodalan Nasional Madani (PNN). 
<a href="https://www.smartkarma.com/entities/bank-rakyat-indo-agroniaga" target="_blank" data-smartkarma-citation="entities:16626:1" rel="noopener">Bank Rakyat Indo Agroniaga (AGRO IJ)</a>,  a subsidiary of <a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia Persero (BBRI IJ)</a>, has already been selected as its digital banking arm. Given that there is significant excess capital being generated from this rights issue after the expropriation value on the acquisitions, we see <a href="https://www.smartkarma.com/entities/bank-rakyat-indo-agroniaga" target="_blank" data-smartkarma-citation="entities:16626:1" rel="noopener">Bank Rakyat Indo Agroniaga (AGRO IJ)</a> as a potential recipient of some of this new capital.
One notable digital player which has yet to enter the space in Indonesia is <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> and there is already a relationship between <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> and <a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia Persero (BBRI IJ)</a>, with the bank's venture capital arm recently investing in <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a>. 
We see a strong likelihood of some form of collaboration between <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> and <a href="https://www.smartkarma.com/entities/bank-rakyat-indo-agroniaga" target="_blank" data-smartkarma-citation="entities:16626:1" rel="noopener">Bank Rakyat Indo Agroniaga (AGRO IJ)</a>, which would be mutually beneficial.
We take a positive view on both <a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia Persero (BBRI IJ)</a> after the announcement of the rights issue, with approval likely on 22nd July. We also like <a href="https://www.smartkarma.com/entities/bank-rakyat-indo-agroniaga" target="_blank" data-smartkarma-citation="entities:16626:1" rel="noopener">Bank Rakyat Indo Agroniaga (AGRO IJ)</a>, more especially if it ties up with <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a>.

Bank Rakyat Indonesia Persero (BBRI IJ) has just announced plans for a long-awaited rights issue, representing 23.25% of its total equity, which potentially lifts an overhang for the bank.
Part of the proceeds of the rights issue will be used to acquire government pawnshop operator, PT Pegadaian, as well as ultra-micro lender PT Permodalan Nasional Madani (PNN). 
Bank Rakyat Indo Agroniaga (AGRO IJ),  a subsidiary of Bank Rakyat Indonesia Persero (BBRI IJ), has already been selected as its digital banking arm. Given that there is significant excess capital being generated from this rights issue after the expropriation value on the acquisitions, we see Bank Rakyat Indo Agroniaga (AGRO IJ) as a potential recipient of some of this new capital.
One notable digital player which has yet to enter the space in Indonesia is Grab and there is already a relationship between Grab and Bank Rakyat Indonesia Persero (BBRI IJ), with the bank's venture capital arm recently investing in Grab. 
We see a strong likelihood of some form of collaboration between Grab and Bank Rakyat Indo Agroniaga (AGRO IJ), which would be mutually beneficial.
We take a positive view on both Bank Rakyat Indonesia Persero (BBRI IJ) after the announcement of the rights issue, with approval likely on 22nd July. We also like Bank Rakyat Indo Agroniaga (AGRO IJ), more especially if it ties up with Grab.

Bank Rakyat Indonesia (BBRI IJ) - Ultra-Micro and Digital Aspirations in Place

External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

<ul><li>We expect a temporary deceleration in banks’ FY24 earnings growth, driven by slower loan growth, in-line with past trend in election year.</li><li>With NIM, CIR and CoC remain in check, and healthy asset quality, we expect big-4 banks’ to resume robust net profit growth in FY25.</li><li>We reinitiate the banking sector coverage with Overweight rating and BBCA as our top pick in FY24, followed by BMRI.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect a temporary deceleration in banks’ FY24 earnings growth, driven by slower loan growth, in-line with past trend in election year.With NIM, CIR and CoC remain in check, and healthy asset quality, we expect big-4 banks’ to resume robust net profit growth in FY25.We reinitiate the banking sector coverage with Overweight rating and BBCA as our top pick in FY24, followed by BMRI.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Cross Asset Strategy

<ul>
<li>The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia</li>
<li>The past week saw insights on <a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a>, <a href="https://www.smartkarma.com/entities/bank-mandiri-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:441:1" rel="noopener">Bank Mandiri Persero (BMRI IJ)</a>, <a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a>, and H2G Green in Singapore.</li>
<li>There were also sector pieces on Indonesian infrastructure and Indonesian tobacco. </li>
</ul>


The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia
The past week saw insights on Matahari Department Store (LPPF IJ), Bank Mandiri Persero (BMRI IJ), Astra International (ASII IJ), and H2G Green in Singapore.
There were also sector pieces on Indonesian infrastructure and Indonesian tobacco. 


The Week That Was in ASEAN@Smartkarma - Matahari Dept Store Has Style, Bank Mandiri, and Astra Intl.

<ul>
<li>The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.</li>
<li>The past week saw insights on <a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak</a> post 2Q numbers, <a href="https://www.smartkarma.com/entities/ptt-exploration-and-production-public-company-limited" target="_blank" data-smartkarma-citation="entities:261:1" rel="noopener">PTT E&amp;P (PTTEP TB)</a>, <a href="https://www.smartkarma.com/entities/synnex-thailand-pcl" target="_blank" data-smartkarma-citation="entities:8077:1" rel="noopener">Synnex Thailand (SYNEX TB)</a> and <a href="https://www.smartkarma.com/entities/bangkok-aviation-fuel-services" target="_blank" data-smartkarma-citation="entities:5154:1" rel="noopener">Bangkok Aviation Fuel Services (BAFS TB)</a>. </li>
<li>There was also an insight on Indonesian Digital Banks, with much excitement around the space as major players start to draw on their respective ecosystems. We search for potential winners.</li>
</ul>


The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.
The past week saw insights on Bukalapak post 2Q numbers, PTT E&amp;P (PTTEP TB), Synnex Thailand (SYNEX TB) and Bangkok Aviation Fuel Services (BAFS TB). 
There was also an insight on Indonesian Digital Banks, with much excitement around the space as major players start to draw on their respective ecosystems. We search for potential winners.


The Week That Was in ASEAN@Smartkarma - Bukalapak's Take Rates, Indonesia's Digital Banks, and PTTEP

Indonesia

PT Bank Rakyat Indonesia Agroniaga Tbk operates general banking activities.

Bank Rakyat Indo Agroniaga (AGRO IJ)

Indonesian Digital Banks - Ecosystems and Channels

Indonesian Digital Banks are an increasing focus for investors with the potential to serve the huge numbers of underbanked in Indonesia through...

Angus Mackintosh

Bank Rakyat Indonesia (BBRI IJ) - Ultra-Micro and Digital Aspirations in Place

We are positive Bank Rakyat Indonesia after the announcement of a long-awaited rights issue. We also like Bank Rakyat Indo Agroniaga (AGRO IJ),...

Angus Mackintosh

Banks: Moderating FY24 Growth

We expect a temporary deceleration in banks’ FY24 earnings growth, driven by slower loan growth, in-line with past trend in election year.

BRI Danareksa Research

The Week That Was in ASEAN@Smartkarma - Matahari Dept Store Has Style, Bank Mandiri, and Astra Intl.

The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity...

Angus Mackintosh

The Week That Was in ASEAN@Smartkarma - Bukalapak's Take Rates, Indonesia's Digital Banks, and PTTEP

The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity...

Angus Mackintosh